Activation of a modern industry
AbstractThis paper constructs an integrated framework to disentangle the underlying economic mechanism of industrial transformation. We consider three essential elements for the analysis: skill requirements, industry-wide spillovers, and degrees of consumption subsistence. We find that human and nonhuman resources, production factor matching, and industrial coordination are all important for activating a modern industry. In the process of industrial transformation, job destruction may exceed job creation, and income distribution may get worse immediately following the activation of a modern industry. An array of policy prescriptions for advancing a poor country is provided.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 74 (2004)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Danyang Xie & Ping Wang, 2002. "Activation of a Modern Industry," IMF Working Papers 02/15, International Monetary Fund.
- Ping Wang & Danyang Xie, 2001. "Activation of a Modern Industry," Vanderbilt University Department of Economics Working Papers 0135, Vanderbilt University Department of Economics.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
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